Reissuance of Proposed Regulations on Partnership Audit Rules

The U.S. Treasury Department and the Internal Revenue Service (the “IRS”) have re-issued proposed regulations (the “Proposed Regulations”) on the new centralized partnership audit rules enacted as part of the Bipartisan Budget Act of 2015 (the “New Partnership Audit Rules”). The Proposed Regulations are nearly identical to proposed regulations on the New Partnership Audit Rules previously issued in January, which were withdrawn soon after issuance following an executive order from the Trump Administration. The New Partnership Audit Rules will mandatorily apply to partnerships for tax years beginning on or after January 1, 2018. See prior coverage of the New Partnership Audit Rules.